About Cor.

Cor Capital is an investment management firm specialising in liability-free absolute returns as a means to creating and preserving real wealth. The beliefs of its founders and management are aligned with Austrian investing principles.

Asset class returns, in our opinion, are largely driven by changes in expectations of the rate and direction of economic growth and inflation. That said, economic and market outcomes are uncertain; changes to expectations are unpredictable for practical investment purposes. Surprises are common and have an under appreciated influence on long-term asset class returns.

However economic and market outcomes are not arbitrary; while very different in nature and critically consequential to investor wealth, the range of possible scenarios is limited.

Less unpredictable than changes to expectations are the behavioural responses of market participants to each type of change i.e. what happens to broad asset class prices given a certain change to growth or inflation expectations is somewhat predictable.

From this philosophical framework, we use a strategic asset mix to remain positioned for profit, but protected from losses, regardless of prevailing market conditions. The strategic asset mix represents our risk neutral position and its elements are both linearly and asymmetrically aligned to the defined scenarios.

Beyond this strategic mix we measure and monitor ‘asset popularity’ as a contrary indicator of value and risk.

Cor portfolios, by design, are positively skewed, are robust to drawdowns under extreme liquidity and financial system conditions, and exhibit low correlation to equity and bond market returns.